In the late 1990s the club attracted the attention of notorious SOMA police captain Dennis Martel, who at the urging of residents moving into new upscale lofts in the area was orchestrating efforts to shut down all of the major nightclubs and performance venues in his precinct. After a series of raids and efforts to revoke their entertainment permit, all of which the club was able to resist in court, the police were finally able to obtain a one-month suspension of the club's liquor license after several patrons were caught smoking marijuana at one event. In the aftermath of these unpopular raids and at the urging of a grand jury,[3] San Francisco eventually demoted and transferred the officer, and created an Entertainment Commission to replace the police department as the body to issue entertainment permits.[4][5]

Ultimately the club succumbed to rising real estate prices during the dot-com bubble. It lost its lease in 2001 when the building owner raised the rent in expectation of renting the space out for business use.[2] The production company continues to release and distribute approximately forty CD titles under the "Live from Maritime Hall" name.